The Securities and Exchange Board of India (SEBI) decided to relax its regulations to enable employees to apply for shares over the Rs 200,000 limit.
The application for shares of the value in excess of Rs 2 lakh shall be considered as application for additional shares and shall be considered only in the event of under-subscription in the employee reservation portion.
Tthe unsubscribed shares available in the employee reservation portion shall be allotted on a proportionate basis to the employees who have applied for the additional shares.
Value of total allotment to an employee under the employee reservation portion, including the additional allotment shall not exceed Rs 5 lakh.
SEBI also decided to increase the limit of foreign investment in Indian stock exchanges by 10 per cent to 15 per cent and allow foreign portfolio investor to acquire shares of unlisted stock exchanges through transactions outside of recognized stock exchange including the initial allotment.